No seriously, I've been talking to the Cedar Fair CFO
Posted Tuesday, July 31, 2007 9:40 AM | Contributed by Jeff
[Ed. note: A great many people have pointed out that no amount of searching on the Internet turns up any significant results about Destiny Capital or its credibility, track record or resources as an investor, which is not surprising given that it appears to have been created specifically for the purpose of buying out Cedar Fair. But there also aren't a lot of results on the part of its founders. Given the questionable credibility of the NY Post and The Sandusky Register, frankly I suggest taking any of this as a grain of salt. -J]
Despite Kinzel's denial, Robert McDuff Sr., CEO of Destiny Capital, said his company had been in talks with Cedar Fair for the last two weeks and agreed to keep Kinzel and other top officials on board if a deal is made. "Me and Peter Crage have been communicating through e-mail and phone," McDuff said. "It's just in the early stages."
At least this gives us all something to talk about since nothing else much has been going on. :)
Besides, Disney bought up a ton of land in swampy central Florida under a ton of dummy company names. So, there being little to nothing on Destiny Capital means nothing really. I'm not quite sure why McDuff keeps blabbing his mouth though. He should be denying things like Kinzel.
How does someone (or their business) amass 4 billion dollars without anybody noticing? I mean previous deals, acquisitions, etc. How did McDuff and Roham make so much money? Did they make that much money?
You can't take over the company without owning a majority in it. Since even the largest investor owns barely 2% of all outstanding units, that would not be easy. Even then, a PE firm wants to own it all, not some of it. If they want to buy, they have to offer to buy out all units, at a premium, and unit holders have to approve it with a simple majority.
So if 51% of stochholders approve the sale and 49% disapprove, those 49% are basically SOL and have to sell anyway? Or do they maintain ownership while the investor assumes ownership from the majority that decided to sell? I guess that's why Comcast was unable to buy Disney a few years back.
*** This post was edited by Rob Ascough 8/1/2007 10:27:57 AM ***
And the other way around. If 49% approve the sale and 51% don't, it's a no go. A PE firm isn't interested in being a majority shareholder in a publicly held firm. They'd eventually take it public again, selling shares at an even higher premium, but they get all the profits themselves.